Coinbase Backs Security Token Startup's $12.7 Million Funding Round

Security token startup Securitize has raised $12.75 million in Series A funding backed by Coinbase Ventures and Ripple's Xpring, among others.

AccessTimeIconNov 26, 2018 at 4:00 p.m. UTC
Updated Sep 13, 2021 at 8:37 a.m. UTC

Security token startup Securitize announced it has raised nearly $13 million in a Series A funding round Monday as part of its mission to digitize traditional securities products on a blockchain.

Led by Blockchain Capital, the equity investments were made to help the company bring on "knowledgeable investors" as it prepares for a security token offering, co-founder and CEO Carlos Domingo told CoinDesk. The company further aims to streamline its investor relations, build up liquidity and compliance efforts, and maintain capital formation.

With the deal, Blockchain Capital co-founder and managing partner Brad Stephens will join Securitize's board of directors, the startup said. Coinbase Ventures, Ripple's Xpring, OKEx's OK Blockchain Capital, Global Brain, NXTP and NovaBlock Capital also participated.

Domingo explained that the company wants to transition the securities industry, currently estimated at some $7 trillion, to decentralized ledgers as they are more transparent, auditable and can facilitate instantaneous transactions.

He added:

"We believe the tokenisation of legacy securities industry is taking place right now on a global scale. To take advantage of this emerging market opportunity, we plan to grow our engineering team and geographic coverage from Latin America to the Asia Pacific Region and other parts of the world for business development."

The company has already begun issuing digital securities for companies such as 22x, SPiCE VC and Augmate, as well as Blockchain Capital's BCAP security token.

Digital securities based on the company's protocol have also been traded on AirSwap and the OpenFinance Network in a regulatory-compliant manner, a firm noted.

Xpring senior vice president Ethan Beard explained in a statement that the Ripple initiative is focused on tokenized securities, among other areas.

"Securitize is great team focused on unlocking the private securities market with compliant, liquid, and easily tradable assets," he added.

Editor's note: This article has been updated to include additional participants.

Carlos Domingo image courtesy of Securitize


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.


CoinDesk - Unknown
Three Arrows Paper Trail Leads to Trading Desk Obscured Via Offshore Entities

As Three Arrows Capital collapsed under market pressure, its much-lesser known trading desk, TPS Capital, remained active, sources say. But a complex ownership structure might frustrate creditors' efforts to collect.

CoinDesk - Unknown
CoinDesk - Unknown
June Was Bitcoin’s Worst Month Ever

Plus, European crypto regulation comes into view.

CoinDesk - Unknown
CoinDesk - Unknown
What Traders Are Saying About Bitcoin's Biggest Monthly Loss in 11 Years

Poor macroeconomic sentiment, fears of inflation and systemic risks from the crypto market pushed the cryptocurrency below 2017’s highs.

CoinDesk - Unknown
CoinDesk - Unknown
Three Arrows Capital Files for Bankruptcy in New York Tied to British Virgin Islands Proceeding

A British Virgin Islands court ordered Three Arrows' BVI branch into liquidation earlier this week.

CoinDesk - Unknown